PR Newswire | Aug 25, 2020 05:30AM EDT

Results

08/25 04:30 CDT

Autohome Inc. Announces Unaudited Second Quarter Ended June 30, 2020 Financial Results BEIJING, Aug. 25, 2020

BEIJING, Aug. 25, 2020 /PRNewswire/ -- Autohome Inc. (NYSE: ATHM) ("Autohome" or the "Company"), the leading online destination for automobile consumers in China, today announced its unaudited financial results for the second quarter ended June 30, 2020.

SecondQuarter2020Highlights[1]

* Net Revenues in the second quarter of 2020 were RMB2,313.3 million ($327.4 million), in line with the Company's guidance. * Online Marketplace and Others Revenues in the second quarter of 2020 were RMB540.2 million ($76.5 million), which contributed to 23.4% of total revenues, compared to 17.0% in the corresponding period of 2019. Data Products in the online marketplace and other business achieved revenue growth of close to 70% year-over-year in the second quarter of 2020. * Net Income attributable to Autohome Inc. in the second quarter of 2020 was RMB824.5 million ($116.7 million), compared to RMB801.9 million for the corresponding period of 2019. * Adjusted Net Income attributable to Autohome Inc. (Non-GAAP)[2] in the second quarter of 2020 was RMB881.0 million ($124.7 million), compared to RMB855.4 million for the corresponding period of 2019.

Mr. Min Lu, Chairman of the Board of Directors and Chief Executive Officer of Autohome, stated, "Autohome is making steady strides in building an open and diversified automotive ecosystem with its unique product matrix and ongoing innovations. To support OEMs' digital transformation, we expanded our offerings beyond project-based services, with annual performance-based comprehensive marketing solutions now available, helping our automaker partners plan and carry out their marketing campaigns more efficiently. Our data products also continued their strong growth momentum on the back of proven effectiveness and further product optimization. Looking forward, we remain focused on expanding the breadth and depth of our offerings while providing customers with highly efficient intelligent services that provide even further value to the automotive industry."

Mr. Jun Zou, Chief Financial Officer of Autohome, added, "Our second-quarter results reflected solid progress in executing our key growth strategy. Data products together with auto-financing and transaction businesses, achieved double-digit revenue growth, contributing to strong year-over-year growth of 38% in the online marketplace and others revenues. Core businesses also registered sequential improvements, which indicate the gradual recovery of the auto market. Meanwhile, net margin for the quarter improved on a year-over-year basis as we remained committed to enhancing operating efficiency across the platform. We will continue to explore new growth opportunities while keeping a disciplined cost structure, in order to deliver positive returns for our shareholders in the long run."

^[1] The reporting currency of the Company is Renminbi ("RMB"). For theconvenience of readers, certain amounts throughout the releaseare presented in US dollars ("$"). Unless otherwise noted, all conversions fromRMB to US$ are translated at the noon buying rate ofUS$1.00 to RMB7.0651 on June 30, 2020 in the City of New York for cabletransfers of RMB as certified for customs purposes by theFederal Reserve Bank of New York. No representation is made that the RMBamounts could have been, or could be, converted intoUS$ at such rate.

^[2] Adjusted net income attributable to Autohome Inc. (Non-GAAP) is defined asnet income attributable to Autohome Inc. excluding share-based compensation expenses and amortization expenses of intangible assetsrelated to acquisitions. For more information on this andother non-GAAP financial measures, please see the section captioned "Use ofNon-GAAP Financial Measures" and the tables captioned"Reconciliations of Non-GAAP and GAAP Results" set forth at the end of thisrelease.

Unaudited Second Quarter 2020 Financial Results

NetRevenues

Net revenues in the second quarter of 2020 were RMB2,313.3 million ($327.4 million), compared to RMB2,309.0 million in the corresponding period of 2019.

* Media services revenues were RMB932.1 million ($131.9 million), compared to RMB1,028.3 million in the corresponding period of 2019. The decline was primarily due to the decrease in average revenue per automaker advertiser. * Leads generation services revenues were RMB841.0 million ($119.0 million), compared to RMB888.8 million in the corresponding period of 2019. The decline was primarily due to the decrease in the number of paying dealers. * Online marketplace and others revenues increased by 37.8% to RMB540.2 million ($76.5 million) from RMB391.9 million in the corresponding period of 2019. The increase was driven by data products as well as auto-financing and transaction businesses.

Cost of Revenues

Cost of revenues was RMB265.2 million ($37.5 million), compared to RMB263.6 million in the corresponding period of 2019. In addition, cost of revenues included share-based compensation expenses of RMB6.2 million ($0.9 million) during the second quarter of 2020, compared to RMB4.1 million for the corresponding period of 2019.

Operating Expenses

Operating expenses were RMB1,281.3 million ($181.4 million) in the second quarter of 2020, compared to RMB1,335.3 million in the corresponding period of 2019.

* Sales and marketing expenses were RMB872.4 million ($123.5 million) in the second quarter of 2020, compared to RMB892.9 million in the corresponding period of 2019. Sales and marketing expenses for the second quarter of 2020 included share-based compensation expenses of RMB9.3 million ($1.3 million), compared to RMB12.9 million in the corresponding period of 2019. * General and administrative expenses were RMB82.5 million ($11.7 million) in the second quarter of 2020, compared to RMB81.8 million in the corresponding period of 2019. General and administrative expenses for the second quarter of 2020 included share-based compensation expenses of RMB15.2 million ($2.1 million), relatively flat compared to the corresponding period of 2019. * Product development expenses were RMB326.4 million ($46.2 million) in the second quarter of 2020, compared to RMB360.6 million in the corresponding period of 2019. Product development expenses for the second quarter of 2020 included share-based compensation expenses of RMB24.8 million ($3.5 million), compared to RMB20.2 million in the corresponding period of 2019.

Operating Profit

Operating profit was RMB870.7 million ($123.2 million) in the second quarter of 2020, compared to RMB835.3 million in the corresponding period of 2019.

Income TaxExpense

Income tax expense was RMB174.4 million ($24.7 million) in the second quarter of 2020, compared to RMB147.3 million in the corresponding period of 2019.

Net Income Attributable to Autohome Inc.and EPS

Net income attributable to Autohome Inc. was RMB824.5 million ($116.7 million) in the second quarter of 2020, compared to RMB801.9 million in the corresponding period of 2019. Basic and diluted earnings per share/per ADS or "EPS"were RMB6.92($0.98) and RMB6.89($0.97), respectively, compared to basic and diluted EPS of RMB6.77 and RMB6.70, respectively, in the corresponding period of 2019.

Adjusted Net Income Attributable to Autohome Inc.(Non-GAAP) and Non-GAAP EPS

Adjusted net income attributable to Autohome Inc. (Non-GAAP) was RMB881.0 million ($124.7 million) in the second quarter of 2020, compared to RMB855.4 million in the corresponding period of 2019. Non-GAAP basic and diluted EPS were RMB7.39($1.05) and RMB7.36($1.04), respectively, compared to non-GAAP basic and diluted EPS of RMB7.22 and RMB7.15, respectively, in the corresponding period of 2019.

Balance Sheet and Cash Flow

As of June 30, 2020, the Company had cash and cash equivalents and short-term investments of RMB13.0 billion ($1,843.9 million). Net cash provided by operating activities in the second quarter of 2020 was RMB465.7 million ($65.9 million).

Employees

The Company had 4,006 employees as of June 30, 2020.

Business Outlook

Autohome currently expects to generate net revenues in the range of RMB2,240 million ($317.1 million) to RMB2,280 million ($322.7 million) in the third quarter of fiscal year 2020. This forecast reflects the Company's current and preliminary view on the market and its operating conditions, which are subject to change, particularly as a result of uncertainties surrounding the ongoing COVID-19 pandemic.

Conference Call Information

The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, August 25, 2020 (8:00 PM Beijing Time on the same day).

Dial-in details for the earnings conference call are as follows:

United States: +1-855-824-5644

Hong Kong: +852-3027-6500

Mainland China: 8009-880-563/400-821-0637

United Kingdom: 0800-026-1542

International: +1-646-722-4977

Passcode: 22378791#

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until August 31, 2020:

United States: +1-646-982-0473

International: +61-2-8325-2405

Passcode: 319335127#

Additionally, a live and archived webcast of the conference call will be available at http://ir.autohome.com.cn.

About Autohome Inc.

Autohome Inc. (NYSE: ATHM) is the leading online destination for automobile consumers in China. Its mission is to enhance the car-buying and ownership experience for auto consumers in China. Autohome provides original generated content, professionally generated content, user-generated content, AI-generated content, a comprehensive automobile library, and extensive automobile listing information to automobile consumers, covering the entire car purchase and ownership cycle. The ability to reach a large and engaged user base of automobile consumers has made Autohome a preferred platform for automakers and dealers to conduct their advertising campaigns. Further, the Company's dealer subscription and advertising services allow dealers to market their inventory and services through Autohome's platform, extending the reach of their physical showrooms to potentially millions of internet users in China and generating sales leads for them. The Company offers sales leads, data analysis, and marketing services to assist automakers and dealers with improving their efficiency and facilitating transactions. Autohome operates its "Autohome Mall," a full-service online transaction platform, to facilitate transactions for automakers and dealers. Further, through its websites and mobile applications, it also provides other value-added services, including auto financing, auto insurance, used car transactions, and aftermarket services. For further information, please visit www.autohome.com.cn.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates" and similar statements. Among other things, Autohome's business outlook, Autohome's strategic and operational plans and quotations from management in this announcement contain forward-looking statements. Autohome may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Autohome's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Autohome's goals and strategies; Autohome's future business development, results of operations and financial condition; the expected growth of the online automobile advertising market in China; Autohome's ability to attract and retain users and advertisers and further enhance its brand recognition; Autohome's expectations regarding demand for and market acceptance of its products and services; competition in the online automobile advertising industry; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Autohome's filings with the SEC. All information provided in this press release is as of the date of this press release, and Autohome does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Use of Non-GAAP Financial Measures

To supplement net income presented in accordance with U.S. GAAP, we use Adjusted Net Income attributable to Autohome Inc., Non-GAAP basic and diluted EPS and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income attributable to Autohome Inc. as net income attributable to Autohome Inc. excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. We define Non-GAAP basic and diluted EPS as Adjusted Net Income attributable to Autohome Inc. divided by the basic and diluted weighted average number of ordinary shares. We define Adjusted EBITDA as net income attributable to Autohome Inc. before income tax expense/(benefit), depreciation expenses of property and equipment and amortization expenses of intangible assets and share-based compensation expenses. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance, in addition to net income prepared in accordance with U.S. GAAP. We believe these non-GAAP financial measures are important to help investors understand our operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess our core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of our results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliation of non-GAAP and GAAP Results" set forth at the end of this press release.

For investor and media inquiries, please contact:

In China:

Autohome Inc.Investor Relations Anita ChenTel: +86-10-5985-7483Email: ir@autohome.com.cn

The Piacente Group, Inc.Xi ZhangTel: +86-10-6508-0677 E-mail: autohome@tpg-ir.com

In the United States:

The Piacente Group, Inc.Brandi PiacenteTel: +1-212-481-2050 E-mail: autohome@tpg-ir.com

AUTOHOME INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amount in thousands, except per share data)

For three months ended June 30, For six months ended June 30,

2019 2020 2019 2020

RMB RMB US$ RMB RMB US$

(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Net revenues:

Media services 1,028,308 932,078 131,927 1,671,543 1,498,388 212,083

Leads generation services 888,799 841,020 119,039 1,622,886 1,511,479 213,936

Online marketplace and others 391,855 540,170 76,456 626,461 850,030 120,314

Total net revenues 2,308,962 2,313,268 327,422 3,920,890 3,859,897 546,333

Cost of revenues (263,630) (265,217) (37,539) (448,084) (443,079) (62,714)

Gross profit 2,045,332 2,048,051 289,883 3,472,806 3,416,818 483,619

Operating expenses:

Sales and marketing expenses (892,901) (872,426) (123,484) (1,402,625) (1,396,647) (197,683)

General and administrative (81,807) (82,482) (11,675) (149,565) (171,634) (24,293) expenses

Product development (360,603) (326,385) (46,197) (629,176) (618,323) (87,518) expenses

Total operating expenses (1,335,311) (1,281,293) (181,356) (2,181,366) (2,186,604) (309,494)

Other income, net 125,239 103,991 14,719 201,277 226,462 32,054

Operating profit 835,260 870,749 123,246 1,492,717 1,456,676 206,179

Interest income 114,206 128,869 18,240 228,427 266,260 37,687

Loss from equity method (89) (360) (51) (1,671) (1,815) (257) investments

Fair value change of other non- - - - (4,026) (9,116) (1,290) current assets

Income before income taxes 949,377 999,258 141,435 1,715,447 1,712,005 242,319

Income tax expense (147,285) (174,430) (24,689) (266,810) (299,914) (42,450)

Net income 802,092 824,828 116,746 1,448,637 1,412,091 199,869

Net income attributable to (213) (351) (50) (449) (435) (62) noncontrolling interests

Net income attributable to 801,879 824,477 116,696 1,448,188 1,411,656 199,807 Autohome Inc.

Earnings per share for ordinary share

Basic 6.77 6.92 0.98 12.24 11.85 1.68

Diluted 6.70 6.89 0.97 12.12 11.79 1.67

Weighted average shares used to compute earnings per share attributable to common stockholders:

Basic 118,463,582 119,160,448 119,160,448 118,347,380 119,114,768 119,114,768

Diluted 119,632,344 119,746,398 119,746,398 119,494,603 119,696,812 119,696,812

AUTOHOME INC.

RECONCILIATION OF NON-GAAP AND GAAP RESULTS

(Amount in thousands, except per share data)

For three months ended June 30, For six months ended June 30,

2019 2020 2019 2020

RMB RMB US$ RMB RMB US$

(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Net income attributable to 801,879 824,477 116,696 1,448,188 1,411,656 199,807 Autohome Inc.

Plus: income tax expense 147,285 174,430 24,689 266,810 299,914 42,450

Plus: depreciation of property and 25,681 38,289 5,419 51,007 70,694 10,006 equipment

Plus: amortization of intangible 2,917 2,921 413 5,834 6,151 871 assets

EBITDA 977,762 1,040,117 147,217 1,771,839 1,788,415 253,134

Plus: share-based compensation 52,397 55,420 7,844 105,584 113,277 16,033 expenses

Adjusted EBITDA 1,030,159 1,095,537 155,061 1,877,423 1,901,692 269,167

Net income attributable to 801,879 824,477 116,696 1,448,188 1,411,656 199,807 Autohome Inc.

Plus: amortization of acquired intangible assets of Cheerbright, 1,139 1,139 161 2,278 2,278 322 China Topside and Norstar

Plus: share-based compensation 52,397 55,420 7,844 105,584 113,277 16,033 expenses

Adjusted net income 855,415 881,036 124,701 1,556,050 1,527,211 216,162 attributable to Autohome Inc.

Non-GAAP earnings per share for ordinary shares

Basic 7.22 7.39 1.05 13.15 12.82 1.81

Diluted 7.15 7.36 1.04 13.02 12.76 1.81

Weighted average shares used to compute earnings per share attributable to common stockholders:

Basic 118,463,582 119,160,448 119,160,448 118,347,380 119,114,768 119,114,768

Diluted 119,632,344 119,746,398 119,746,398 119,494,603 119,696,812 119,696,812

AUTOHOME INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Amount in thousands, except as noted)

As of December 31, As of June 30,

2019 2020

RMB RMB US$

(Audited) (Unaudited) (Unaudited)

ASSETS

Current assets

Cash and cash equivalents 1,988,298 2,004,278 283,687

Short-term investments 10,806,812 11,022,952 1,560,198

Accounts receivable, net 3,231,486 2,967,765 420,060

Amounts due from related parties, current 29,501 36,877 5,220

Prepaid expenses and other current assets 302,285 517,357 73,227

Total current assets 16,358,382 16,549,229 2,342,392

Non-current assets

Restricted cash, non-current 5,200 5,200 736

Property and equipment, net 281,773 359,799 50,926

Goodwill and intangible assets, net 1,532,024 1,526,772 216,101

Long-term investments 71,664 69,849 9,886

Deferred tax assets 27,782 27,782 3,932

Other non-current assets 879,040 1,093,914 154,833

Total non-current assets 2,797,483 3,083,316 436,414

Total assets 19,155,865 19,632,545 2,778,806

LIABILITIES AND EQUITY

Current liabilities

Accrued expenses and other payables 2,417,438 2,149,244 304,206

Advance from customers 95,636 91,175 12,905

Deferred revenue 1,370,953 1,084,236 153,464

Income tax payable 45,489 118,349 16,751

Amounts due to related parties 36,387 46,538 6,587

Total current liabilities 3,965,903 3,489,542 493,913

Non-current liabilities

Other liabilities 45,534 106,128 15,021

Deferred tax liabilities 538,487 495,697 70,161

Total non-current liabilities 584,021 601,825 85,182

Total liabilities 4,549,924 4,091,367 579,095

Equity

Total Autohome Inc. shareholders' 14,629,097 15,563,899 2,202,927 equity

Noncontrolling interests (23,156) (22,721) (3,216)

Total equity 14,605,941 15,541,178 2,199,711

Total liabilities and equity 19,155,865 19,632,545 2,778,806

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SOURCE Autohome Inc.